Balance instant gratification with long-term planning
Easy access to credit, the pursuit of instant gratification and behavioural psychology.
These are just some of the reasons that came up as factors that contribute to the low savings rate in South Africa on a recent episode of The Moneymakers Show on CNBC Africa, hosted by Discovery Invest at the Discovery Store in Seapoint.
Financial advisers play an important role when it comes to helping you manage your financial behavior and your personality. “It’s not just about being aware of one’s personality. Framing a question negatively or positively can influence the way a person responds to the question,” For example, millennials are very focused on the here and now and not thinking about a future 40 years away, so it is difficult to talk to them about saving for retirement.
Watch the video below to see how financial education changes our predisposition to instant gratification.